Govt announces Rs 32.47 bln tax relief measures for FY 17-18

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ISLAMABAD, May 26 (APP): The government on Friday proposed tax
relief measures worth Rs 32.47 billion for the upcoming fiscal
year 2017-18.
Addressing a press briefing here, Chairman Federal Board of
Revenue, Dr Muhammaed Irshaad informed that the government has
proposed new additional revenue measures worth Rs 120 billion for
the fiscal year 2017-18, and the net revenue impact after deducting
the relief measurers would be Rs 87.53 billion.
Giving break up of the figures, the chairman said in custom tax, Rs
20 billion new tax measures had been proposed while Rs 1.15 billion
relief measures had been proposed by the government.
The net revenue impact in custom duty would be Rs 18.9
billion, he added.
“In sales tax, the total revenue impact has been set at Rs
33.865 billion as the government proposes Rs 18.735 billion tax
relief measures while Rs 52.6 billion additional tax measures”, he
added.
Similarly, the government has proposed Rs 47.35 billion new
tax measures whereas it has also given tax relief worth of Rs 12.587
billion. Consequently, the total income tax revenue would be Rs 35
billion.
He said during the proposed budget, the government has
announced the highest ever relief measures to facilitate specially
poor segment of the society.
The non-filers were taxed heavily by increasing their cost of
business to increase tax filers, he added
Dr Irshaad said for the first time, the government has taken
several measures to protect the local industry by reducing taxes on
import of raw material.
Meanwhile, according to the budgetary documents, the
government has proposed to reduce duty from 11 per cent to 3 per
cent and removal of regularly duty on grandparent and parent stock
of chicken, whereas duty on import of hatching eggs has also been
reduced from 11 per cent to 3 per cent.
The government has also proposed to reduce regulatory duty on
aluminum waste or scrap from 10 per cent to 5 per cent whereas 3 per
cent custom duty on skins and hides have also been proposed to be
exempted.
Similarly, custom duty on stamping foils has also been
exempted while custom duty on sheets for veneering has been slashed
from 16 per cent to 11 per cent.
The government has proposed measures for protection of local
industry including levelling regulatory duty of 5 per cent on import
of synthetic filament yarn, increase of custom duty on aluminum
beverages cans from 11 per cent to 20 per cent, reduction of custom
duty on uncoated polyester film and aluminum wire from 20 per cent
to 11 per cent for manufacturers of metalized yarn and reduction of
custom duty on raw materials for manufacturers of baby diapers.
Similarly income tax rate for corporate sector has been
reduced from 31 per cent to 30 per cent for tax year 2018.
Similarly rate of withholding income tax for mobile phone
subscribers is being reduced from 14 per cent to 12.5 per cent.